Which of the Following Is Most Likely a Long- Run

question 74

Multiple Choice

Which of the following is most likely a long- run decision for a firm?

• A) The amount of inventory to stock.
• B) The price at which to sell the product.
• C) The hours a store should stay open.
• D) How many warehouses to build.
• E) The number of workers to hire.

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Definitions:

Compounded Quarterly

The process where interest is calculated and added to the principal sum of an investment or loan on a quarterly basis, leading to an increase in the amount of interest earned over time.

Future Value

The future value of a current asset on a certain date, estimated based on a projected growth or return rate.

Present Value

Present Value is a financial principle that calculates the current worth of a future amount of money or stream of cash flows given a specific rate of return.

Compound Interest

Interest calculated on the initial principal and also on the accumulated interest of previous periods.